A comment on El Reg:
I don't think that's true because I don't think "Employees cannot have enforced pay cuts" is true.
Anyway, if one is firmly inside IR35 and suspects an investigation is likely, is it worth begging ClientCo to impose an enforced 5% rate cut?
Remember that a negotiation to have a rate cut effectively means that you are no longer within IR35 because it fails the "act like an employee" clause. Employees cannot have enforced pay cuts. So, as a contractor, it is sometimes not a bad idea to accept a rate cut every now and then (whilst looking for a new role) because it gets you out of IR35 and could potentially save 1000's.
If you decide to not take up the offer of a cut; then you also fall outside IR35 because you negotiated but did not agree, a la Mutuality of Obligation.
If you decide to not take up the offer of a cut; then you also fall outside IR35 because you negotiated but did not agree, a la Mutuality of Obligation.
Anyway, if one is firmly inside IR35 and suspects an investigation is likely, is it worth begging ClientCo to impose an enforced 5% rate cut?
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